The Indian economy has clocked a GDP growth of 6.7 per cent in the first quarter of the financial year 2024-25. Figures released by the Ministry of Statistics showed that the crucial manufacturing sector that provides quality jobs to the young workforce posted a 7 per cent growth, while the construction and electricity sectors posted double-digit growth during the quarter. Private Final Consumption Expenditure and Gross Fixed Capital Formation have witnessed growth rates of 7.4 per cent and 7.5 per cent, respectively, during this period.

Aggregate demand conditions are gathering momentum with a revival in rural consumption on the back of growing incomes. This stimulus to demand is expected to reinvigorate the hitherto subdued participation of the private sector in total investment which will spur growth going ahead. The positive outlook for India comes at a time when persistent geopolitical tensions, rekindled fears of a potential recession in key economies and financial market volatility in response to monetary policy divergence cast a shadow on global economic prospects even as inflation moderated grudgingly across countries.